The forex trading industry is a dynamic industry because it continues to change from time to time. Due to its ever-changing nature, you must be agile in all changes and movements that occur in this industry, especially the condition of the forex trading industry in 2020. The first half of this year has finished, while there have been many things that have happened and affected the condition of the forex market movement itself.

Conditions Amidst the Pandemic

The year 2020 began with the emergence of the COVID-19 virus which was later officially declared a pandemic by the World Health Organization (WHO). The COVID-19 pandemic had closed access between countries, including disabling most of the world's economic and industrial activities.

Fortunately, this deactivation was temporary. To overcome the ongoing spread of COVID-19 and restore economic activities, the government finally introduced the new normal practice which was implemented in most countries.

The new normal is an operational restriction followed by new protocols. Until today, the pandemic has not ended. In Indonesia, the number of positive COVID-19 cases continues to increase. Several developed countries that have succeeded in suppressing the rate of spread cannot be calm because there is still the possibility of a second wave of the spread of this virus. It is not surprising that many experts say that this condition has almost brought us into a global crisis situation.

The COVID-19 pandemic has also caused several countries in the world to be on the verge of recession, and several other countries have experienced an economic slowdown. Quite severe conditions also occur in superpowers whose currencies greatly influence the forex industry. The United States is now one of the countries with the highest number of positive COVID-19 cases in the world.

Moreover, at the beginning of the spread, other strong countries such as China also stopped industry and production activities massively. Only recently have several industrial and production sectors started their activities again. From these two reflections of the condition alone, it is enough to describe how the world economy is very difficult to move.

Experts predict that the peak of this condition will be increasingly visible between July-August where the effects of this pandemic will be felt by all types of industries, including forex itself, which is expected to experience sharp movements in the forex market.

Trading Trends During WFH

During the forex industry that has been running for six months, there has been a positive trend that has occurred. This trend occurred during the remote work period or the early quarantine period to suppress the spread of the COVID-19 virus, where workers were asked to work from home (WFH).

Several brokerage firms noted that there was an increase in trading during this period. Not only forex trading, but also gold trading. This is considered reasonable considering that with WFH, someone can do their daily work while interspersed with trading. They become more flexible in managing their time, which is why the increase in trading occurred during the WFH period.

It was also noted that the profits earned during the quarantine period could reach 20% in one day. Further research results show that this positive trend is due to the opportunity for profit during trading which is very large which is driven by significant currency movements, as well as gold prices which tend to increase.

Beware of Crisis Conditions

With significant changes that will also be felt in the forex market, it is necessary to review your trading plan strategy. Is it still relevant or does it need to be revised? Remember, when global changes occur, including situations that put almost everyone in critical condition, as a trader you must be more vigilant. Take extreme measures, for example by disabling all autopilot systems of your forex trading robot. It's time to make manual decisions.

In a crisis situation, the forex market will tend to be calmer than usual. Sharp movements will slowly decrease, but continue. At times like this, there are two choices that a trader can make. First, check and adjust and optimize the trading plan strategy that you have prepared. If it turns out that you have prepared a trading plan strategy, but what you have to face is a calm forex market condition, it means you need to change your strategy.

Second, pay more attention to international news, including the development of COVID-19 cases, falling oil prices, GDP, and labor productivity. The more information that points to a decline in business activity, the more likely the sharp movements mentioned above will occur.

Trade Uncertainty Risk

In addition to the pandemic, the United States and China are also at odds over the trade agreement between the two parties. The two countries that have great influence in the industrial and economic sectors will certainly have a lot of influence on the movement in the forex industry itself. Added to this is the policy taken by the President of the United States, Donald Trump, who also suppressed the trade situation with China by imposing tariffs of more than 500 billion US dollars.

China continues to ask the United States to remove these tariffs, thus creating this condition of uncertainty. In relation to this, investors will reconsider the financial posts in each industrial sector that operates in the United States and also China. This uncertainty can lead to more debt. This condition will affect the movement of the US Dollar in the forex industry.

Tren Trading Cryptocurrency

In addition to these two emergency conditions, in 2020 the forex industry is also enlivened by the cryptocurrency trading trend. Digital currencies are increasingly popular due to their very large volatility (the magnitude of price changes). In other words, traders' opportunities to make a profit are also greater, even greater than other financial markets today.

Several professional forex industry observers even agree that blockchain technology in this cryptocurrency will change the world's financial system, at least in the next decade. Seeing the popularity of Bitcoin as one of the most popular cryptocurrencies continues to strengthen this year, this opinion could come true.

Cryptocurrency can already be accessed, especially for trading at several well-known companies in the forex market itself. It's just a matter of time before this virtual currency is included as a currency option for short-term payment systems. The opportunities for cryptocurrency in the world's financial system are also observed by experts to start from the European legal system. Regulations to strengthen the cryptocurrency portfolio guarantee its security for transactions.

Those are some of the conditions, predictions and trends related to the development of the forex industry in 2020. There are so many momentums that occur. Not to mention that in the second half of 2020, the United States Presidential Election took place, which created many things that traders need to pay attention to.

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